Marico Ltd Sees Significant Open Interest Surge Signalling Market Positioning Shift

Open Interest and Volume Dynamics

On 20 Feb 2026, Marico’s open interest in futures contracts rose sharply by 3,604 contracts, a 10.58% increase from the previous day’s 34,052 to 37,656. This rise in OI was accompanied by a robust futures volume of 18,799 contracts, reflecting heightened trading activity. The combined futures and options value stood at approximately ₹8,63,15 lakhs, with futures contributing ₹85,787 lakhs and options dominating at ₹9,23,14 lakhs, underscoring the stock’s liquidity and active derivatives market.

The underlying stock price closed at ₹792, just 0.88% shy of its 52-week high of ₹800, indicating strong price momentum. Marico outperformed its edible oil sector peers by 0.33% on the day, with a 1.39% gain, compared to the sector’s 1.27% and the Sensex’s 0.61% rise. This relative strength is further supported by the stock trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained uptrend.

Investor Participation and Liquidity

Investor engagement has also intensified, with delivery volumes reaching 9.22 lakh shares on 19 Feb, a 12.38% increase over the five-day average. This rise in delivery volume suggests genuine accumulation rather than speculative trading. The stock’s liquidity remains adequate for sizeable trades, with an average traded value supporting transactions up to ₹2.17 crore, making it accessible for institutional and retail investors alike.

Market Positioning and Directional Bets

The surge in open interest alongside rising volumes typically indicates fresh positions being established rather than existing ones being squared off. In Marico’s case, the 10.58% increase in OI suggests that traders are positioning for a potential upward move, supported by the stock’s proximity to its 52-week high and positive price action.

Options market data further corroborates this bullish sentiment. The substantial options value of over ₹9,23,14 lakhs points to active call option buying, which often reflects expectations of price appreciation. Meanwhile, the futures market’s sizeable turnover and rising OI imply that institutional players may be increasing their long exposure, anticipating continued strength in the edible oil sector.

Fundamental and Technical Assessment

Marico’s current MarketsMOJO Mojo Score stands at 67.0, with a Mojo Grade of Hold, upgraded from Sell on 09 Dec 2025. This upgrade reflects improved fundamentals and technicals, though the stock remains a mid-cap with a market capitalisation of ₹1,01,454 crore, graded 2 on market cap scale. The Hold rating suggests that while the stock shows promise, investors should remain cautious and monitor developments closely.

Technically, the stock’s position above all major moving averages and its near 52-week high status indicate a strong trend. However, the modest outperformance relative to the sector and Sensex suggests that gains may be incremental rather than explosive. The rising delivery volumes and liquidity support a stable accumulation phase rather than speculative spikes.

Sector Context and Broader Market Implications

The edible oil sector has been witnessing steady demand growth, supported by favourable consumption trends and improving supply chain dynamics. Marico, as a leading player, benefits from these tailwinds. The recent open interest surge in its derivatives market may reflect broader sector optimism, with investors seeking exposure to companies poised to capitalise on rising edible oil consumption.

However, investors should be mindful of potential volatility arising from commodity price fluctuations and regulatory changes impacting edible oil imports and exports. The derivatives market activity in Marico could also be influenced by hedging strategies employed by producers and consumers within the sector, adding complexity to directional bets.

Investor Takeaway

Marico’s recent open interest surge and accompanying volume patterns signal increased market confidence and a potential bullish bias in the near term. The stock’s technical strength, combined with improving fundamentals and sector tailwinds, supports this view. However, the Hold rating and mid-cap status advise measured exposure, with investors encouraged to monitor derivatives activity and price action closely for confirmation of sustained momentum.

Given the sizeable options market participation, traders should also watch for shifts in implied volatility and strike price concentrations, which may provide clues on evolving market expectations. Overall, Marico remains a stock of interest for those seeking exposure to the edible oil sector’s growth story, balanced by prudent risk management.

Conclusion

The derivatives market activity in Marico Ltd. reflects a nuanced but optimistic outlook, with rising open interest and volumes indicating fresh bullish positioning. While the stock’s fundamentals and technicals have improved, the Hold rating suggests that investors should remain vigilant and consider alternative opportunities as identified by comprehensive multi-parameter analyses. Marico’s proximity to its 52-week high and strong liquidity profile make it a viable candidate for strategic accumulation, provided broader market and sector conditions remain favourable.

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